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|Articles - April 2011|
|Tuesday, March 22, 2011|
Page 5 of 8Karen Williams served as general counsel for the PDC and head of the Seattle-based law firm Lane Powell’s public-private development group before joining John Carroll’s investment firm in January 2010. The firm has pulled off more than a billion dollars worth of projects including the light rail line to the Portland International Airport, the Portland streetcar and the new Mercy Corps headquarters. In the past it has relied on complex but familiar financial tools designed to spur investment and limit risk. But those tools are no longer sufficient to make deals happen. “Projects aren’t getting done because they can’t generate enough revenue to cover the debt payments,” Williams says. That’s why she’s following the money into EB-5 investments.
In February 2011 Williams and her team submitted their first EB-5 proposal in collaboration with the Portland-based International Sustainable Development Foundation. Their plan is to set up a regional center in Oregon and to channel money from Chinese investors into a wide variety of sustainability-themed projects throughout the state, ranging from building renovations to renewable energy plants. “We’re really focusing on bringing capital into Oregon,” she says. “We think Oregon needs infusions of capital for all kinds of projects.”
In particular Williams envisions EB-5 money providing a substantial boost to rural Oregon’s woody biomass industry by providing a new source of money from investors who are willing to accept relatively small paybacks because of the green card incentive. Those investors need to put their money into job-creating projects, and unlike solar and wind projects, woody biomass is a jobs-heavy source of renewable energy, with harvesters out in the woods gathering raw material and factory workers at the plant converting wood into electricity. Economic development professionals have been trying for years to create woody biomass jobs in struggling former timber towns such as Burns and Prineville. EB-5 money could make those projects pencil out by trading jobs for green cards.
Williams says direct foreign investment could help her group complete diverse projects in portions of the state that are often overlooked. She declines to offer specific examples while the government is still considering her application, but points out that there is no shortage of rural enterprises in need of capital. “It’s a chance for us to help smaller communities to bridge the divide and get access to capital,” she says.
Joseph McCarthy, principal of the Los Angeles-based American Dream Fund, has similarly ambitious EB-5 plans for Oregon. McCarthy was born and raised in Milwaukie and still keeps a townhouse in Lake Oswego, but most of his experience in placing foreign investments has been in Los Angeles. His firm recently put together a complex deal raising $20 million in foreign investment for a 305-room hotel in Hollywood.
McCarthy says he was surprised to learn that Oregon had no EB-5 regional centers as of 2010. After studying the state’s strategic plan for growth he submitted a proposal that targets 13 different industry sectors, such as renewable energy, apparel design and tourism.
McCarthy, who lobbies for the program on a national level, learned about EB-5 when he was a policy adviser to Washington Gov. Christine Gregoire. A Seattle immigration lawyer named Henry Liebman was (and still is) channeling huge sums of foreign capital into urban real estate, and McCarthy recognized the opportunity in what Liebman was doing. “The investor is willing to accept below-market rates of return, provided you can get them a green card,” McCarthy says. He sees no problem with that: “We offer immigration privileges to foreigners for a variety of reasons… It’s not unreasonable to offer them the opportunity to invest in this country and create jobs, and to receive a green card in return.”
McCarthy expects to hear back from the government on his EB-5 proposal in Oregon this spring.
David Luo is also eager to hear back on his EB-5 proposal for Oregon. Luo is a project manager for American United Development Group, a Vancouver, BC-based company with a long history of bringing foreign investment into Canada through a similar program. But the Canadian program has slowed down since the government doubled the required investment for a green card from $400,000 Canadian to $800,000.
“The doubling of the amount required in Canada has already created a shift from Canada to the U.S.,” says Luo. “The number of people applying for the Canadian program has dropped and the number applying to the U.S. is increasing rapidly.”
Friday, July 10, 2015
BY DAN COOK
The Affordable Care Act has triggered a rush on health care plan redesign, a process fraught with hidden costs and consequences.
Wednesday, August 19, 2015
BY KIM MOORE
A conversation with Chris Maples, president of the Oregon Institute of Technology.
Monday, July 13, 2015
BY JACOB PALMER
Dean of the Atkinson Graduate School of Management, Willamette University
Friday, July 10, 2015
BY LINDA BAKER
Market of Choice is on a tear. In 2012 the 35-year-old Eugene-based grocery chain opened a central kitchen/distribution center in its hometown. The market opened a third Portland store in the Cedar Mill neighborhood this year; a Bend outpost broke ground in March. A fourth Portland location is slated for the inner southeast “LOCA” development, a mixed-use project featuring condos and retail. Revenues in 2014 were $175 million, a double-digit increase over 2013. CEO Rick Wright discusses growth, market trends and how he keeps new “foodie” grocery clerks happy.
Wednesday, August 19, 2015
BY AMY MILSHTEIN
Training, from the mundane to the sublime, bolsters companies and workers in an uncertain world.
Thursday, August 06, 2015
Car and ride sharing services have taken urban areas by storm. Low-income and suburban communities are left at the curb.
Wednesday, August 19, 2015
BY BRIAN LIBBY
Ben Kaiser holds his ground.
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For good or ill, gay marriage inspires many people. They have strong feelings about it. Sometimes those strong feelings are grounded in religion and sometimes they are not. When the workplace is added to the mix, emotions tend to run high. After giving an overview of two current situations, The Bullard Edge is going to outline three key points for consideration and clarity.
Yesterday, a divided National Labor Relations Board dropped another hammer on the employer community. In a long-awaited and much debated move, the Board jettisoned the decades old standard for determining when two independent businesses should be considered joint employers of an individual worker for collective bargaining purposes.
Transforming the culture of Oregon’s educational leadership.
Attendance, breakfast buffet, materials, certificate of attendance and parking are all complimentary on behalf of the firm.
New regulations are in effect and more updates are on the horizon, are you prepared?
The Oregon Entrepreneurs Network (OEN) is pleased to announce 16 finalists — from over 60 nominees — for the 2015 OEN Tom Holce Entrepreneurship Awards.